New Delhi, Sep 9: GST Council headed by Union Finance Minister Nirmala Sitharaman on Monday decided to set up a Group of Ministers (GoM) on reducing tax rate on life and health insurance and cut GST on cancer drugs and namkeens.
Briefing reporters on the outcome of the 54th GST Council meeting, Sitharaman said it has decided to have a Group of Ministers (GoM) to look into the GST rate on life and health insurance.
The GoM will be headed by Bihar Deputy Chief Minister Samrat Choudhary, who is currently heading the panel on GST rate rationalisation.
Sitharaman said that new members would be joining the GoM to look into GST on health insurance.
The GoM will be submitting its report by October end, she said.
The issue of taxation of insurance premiums had figured in Parliament discussions with Opposition members demanding that health and life insurance premiums be exempt from the GST. Even Transport Minister Nitin Gadkari wrote to Sitharaman on the issue.
Sitharaman in her reply to a discussion on the Finance Bill had said that 75 per cent of the GST collected goes to states and the Opposition members should ask their state finance ministers to bring the proposal at the GST Council.
The GST Council in its meeting on Monday also decided to cut tax rates on cancer drugs to 5 per cent from 12 per cent and namkeens from 18 per cent to 12 per cent.
Sitharaman further said that a GoM will also be constituted to deal with the issue concerning compensation cess which will cease after March 2026.
The Council also deliberated on the GoM's status report on rate rationalisation and online gaming.
The minister further said that a committee of secretaries headed by Additional Secretary (Revenue) will be formed on the IGST which is currently facing a negative balance. It will look into ways to retrieve the money from states.
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Thane (PTI): Three persons were killed and 15 others injured when an auto-rickshaw hit a bus and some other vehicles on a highway in Maharashtra's Thane district on Wednesday morning, police said.
The accident took place at 4.15 am on Mumbai-Agra highway near Khinavli bridge at Ghoteghar village in Shahapur taluka, they said.
The auto-rickshaw driver lost control over the wheels. As a result, the vehicle hit the road-divider, jumped the lane and collided with a private luxury bus, two cars and a tempo coming from the opposite direction, an official from Shahapur police station told PTI.
Three occupants of the bus died on the spot and 15 other persons, including the auto-rickshaw driver, were injured, he said.
The bus was on way from Nashik to Mumbai, the official said.
After being alerted, local police along with the emergency response teams rushed to the spot.
The injured persons were admitted to Shahapur sub-hospital and three of them were reported to be in a serious condition, the official said.
The bodies were sent to a government hospital for post-mortem, the police added.